In April 2007, Guangzhou Honda announced the establishment of a new Honda subsidiary, Guangzhou Honda Automobile Research & Development Co., Ltd., to oversee activities at a new automobile R&D facility to be established in China. With support from Honda R&D in Japan, the new company will develop an all-new vehicle which will be marketed under an original brand of Guangzhou Honda with sales targeted to begin in 2010.
Honda Auto Parts Manufacturing Co. (CHAM) began operations at its new plant in Foshan City in February 2007. With an annual production capacity of 600,000 transmissions, the new plant initially does machining and assembly of transmissions and drive shafts as well as machining of crank shafts and connecting rods for engines. The company plans to add the machining of gears and the production of control parts, both key high value transmission components currently supplied from Japan.
Honda began producing power products in China in 1994 through the joint venture company Honda-Mindong Generator Co., Ltd. In 2002, Jialing-Honda, a joint venture company, started production of power products including general purpose engines, water pumps and lawn mowers.
The export of general purpose engines from Jialing-Honda Motors Co., Ltd., in Chongqing, to markets including Europe and Australia began in 2003.
In 2001, Honda began exporting a China-made generator model to Japan.